Business Process Outsourcing (BPO) is the external delegation or the strategic use of external resources to perform functions traditionally handled by internal staff. These functions are usually IT intensive or labour intensive and are generally non-core to the company. It is a strategy by which a company contracts such functions to service providers which specialises in such functions. Such service providers also undertake the responsibility of improving the efficiency of such functions.

Most leading companies worldwide are using or considering BPO to achieve both their tactical and strategic objectives. Much of this growth has been achieved through internationalization - with outsourcing services being provided at remote locations virtually anywhere on the globe.

BPO offerings are becoming more comprehensive. BPO providers have traditionally specialized in managing repetitive, transactional chores like Payroll and Accounts Receivable. Today, many BPO firms are enhancing their service portfolios by also handling knowledge-based activities like Budgeting or Resource Planning, giving customers access to a complete menu of end-to-end processes in functional areas such as HR, Finance and Customer Care.

Companies are using BPO to reach a wide range of goals. BPO was once viewed primarily as a way of reducing expenses. Today, enterprises are leveraging BPO services to achieve productivity gains, shorten innovation cycles, enhance customer intimacy and enter new markets.